Wednesday, October 24, 2012

Two Types of Leadership & Business Examples

Active transactional leadership uses contingent rewards. With this approach, employees are praised for their performance and can be eligible for pay increases or other incentives (Matey, 1991, p. 600).

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Transformational leadership incorporates transactional leadership approaches, but moves beyond them. Here, the leader-subordinate influencing relationship is a single wherever relative power is applied to pursue organizational and very own goals. 3 sorts of transformational leadership techniques were identified: charisma/inspirational, individual stimulation and consideration for the person (Matey, 1991, p. 601).

Under charisma/inspirational approaches, the leader demonstrates a high degree of status or celebrity popularity and is held in high esteem by peers, subordinates and superiors alike. Typically, the charismatic leader can be visionary, courageous, significance driven and serves as an agent of change in the organization. Transformational leaders who use person stimulation exhibit a high level of awareness of modern employee problems. Ways where this awareness is created include life experience, the potential to handle ambiguity, the potential to handle complexity and uncertainty, and also the demonstration of intellectual courage. The third type of transformational leader uses consideration for the individual, that may be regarded as the final behavioral pattern of the transformational leader.


Transformational leadership has been shown to become powerful in improving productivity, reducing absenteeism, and improving overall performance of organizations, but it's not a leadership system that is universally applicable. There are prices associated with this kind of leadership, and not all managers will be able to progress effectively from transactional to transformational leadership roles. The numerous benefits that transformational leadership can bring to an company do suggest that careful consideration should be given to promoting its use by companies.

Nonpunitive action is a single process that has proven specially successful inside a range of organizations. This procedure uses discipline without having punishment to enhance commitment and productivity between employees. Threats and warnings aren't used; instead, the employee is given an oral reminder at the time on the very first disciplinary action. If the poor behavior or performance continues, a second reminder is issued in written form. The final step uses a paid suspension day in which the employee is given time off to re-evaluate his commitment to the organization. In this way, the nonpunitive technique demonstrates an corporation commitment to and desire for your employee to be productive within the organization, eliminating the require for punitive action. This discipline without having punishment approach has been implemented at corporations including Union Carbide, General Electric and American Telephone and Telegraph, and has resulted in declines in employee turnover, disciplinary action and absenteeism (Howell & Avolio, 1993, p. 894).



 

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